"Clear Will To Find Way": World Economic Forum Chief On India-US Trade Deal
The India-US trade deal might have had some hiccups because of the 50 per cent tariff issue and the subsequent, inevitable diplomatic strain, but World Economic Forum chief Borge Brende assured NDTV today that it will definitely materialise.
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World Economic Forum President Borge Brende assured NDTV in an exclusive interview that despite recent challenges with the India-US trade deal—including the 50% tariff issue and resulting diplomatic tensions—the agreement will ultimately come to fruition. He characterized recent events as "water under the bridge," noting that America seeks to diversify into Asia, where India holds significant importance due to its robust services sector and expanding manufacturing base.
"There is a clear determination to find a path forward... So I believe the situation we've experienced in recent weeks won't persist," Brende told NDTV.
When questioned whether India's ongoing Russian oil imports could jeopardize the deal, Brende indicated that while this remains a topic of discussion between Washington and New Delhi, there's possibility the Russia-Ukraine conflict might conclude within the next six months.
He noted that when the Ukraine conflict began, no restrictions existed on Russian oil purchases, and if such limitations are now implemented, essential dialogue with major buyers India and China would be necessary. However, he cautioned against a complete Russian oil embargo, warning it would inevitably drive up global oil prices.
The diplomatic chill following Donald Trump's imposition of 50% tariffs is gradually thawing, particularly after communications between the US President and Prime Minister Modi. Although this occurred amid India's strengthening relations with Russia and improving ties with China, questions remain about the trade deal's future, which has seen minimal progress recently.
The United States has traditionally regarded China with caution and as a formidable trade competitor. Consequently, speculation emerged that Washington's concerns intensified following renewed cooperation between the two Asian powers.
Brende offered a nuanced perspective on this matter.
He suggested that while India and China engaging in dialogue and trade benefits the global community, "border disputes remain problematic." Regarding rare earth elements—crucial for semiconductor production and a key interest in India's renewed trade with China—he stated "rare earth isn't actually rare." However, he qualified this by adding, "Abundant rare earth deposits exist globally, but they're not yet developed." He added, "Foreign Minister Wang Yi's visit to India was significant, as was Prime Minister Modi's trip to China."
His unambiguous support was directed toward the anticipated trade agreement with the European Union—one of four major trading blocs—expected before year-end.
"For India, securing a trade deal with the European Union, the world's second-largest economic bloc, is tremendously important. However, it's equally valuable for the EU, which also seeks to diversify its export markets," Brende remarked.